As the pandemic has unfolded, a recession has followed in its wake, as a result of which many companies are struggling. Some will not survive – a number of high profile companies, such as Hertz and Neiman Marcus, have already filed for bankruptcy. Many others have issued financial filings containing a “going concern” disclosure or received an audit opinion with a going concern modification. The government shutdowns and other disruptions that have followed in the wake of the coronavirus outbreak have placed an enormous burden on many businesses. The going concern disclosures filed in the year’s first half reveal how many companies are struggling to stay afloat and what might be in store in the months ahead.
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Financial Restatements Continue to Decline for U.S. Reporting Companies
Financial restatements among U.S public companies hit their lowest level in years in 2016, according to the updated annual report of Audit Analytics. As a result of heightened standards as well as the decreased numbers of listed companies, the share U.S. companies restating their prior financial statements hit their lowest level since 2010 and the number of companies restating their financials is at its lowest level since at least 2002. The findings are summarized in a June 12, 2017 Audit Analytics blog post (here). The full report can be found here (subscription or purchase required).
Continue Reading Financial Restatements Continue to Decline for U.S. Reporting Companies